Countrywide Takes the Lead

Countrywide Financial Corporation, the largest mortgage lender in the U.S. took the lead today in announcing that it will seek to refinance and/or modify about $16 billion in loans that are about to reset to a higher interest rate.

Though this is unprecedented for Countrywide, or any other mortgage lender, the company has been active in refinancing its loans.So far, Countrywide has modified 20,000 loans, or 5% of its mortgage portfolio.

“Unprecedented times call for unprecedented remedies,” Countrywide President and Chief Operating Officer David Sambol said in a statement. “We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it.”If other banks see this as good business, expect more to follow.